Debt Settlement Scams - Recover Your Fees
Promised 'Debt Relief' But Ended Up With Lawsuits? We Fight Predatory Settlement Companies.
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Signs of a Predatory Debt Relief Company
If you experienced these red flags, you may have a claim for damages.
Upfront Fees
Taking fees before they have settled a single debt (Illegal under the TSR).
Advice to Stop Paying
Telling you to stop paying creditors without explaining the risk of lawsuits.
False Promises
Guaranteeing they can settle debts for pennies on the dollar.
Undisclosed Costs
Hiding the fact that their fees + late fees + interest often cost more than the original debt.
The Process
From harassment to compensation in three simple steps.
Free Review
We analyze your case at no cost
We File Suit
We take legal action against violators
You Get Paid
Receive compensation for violations
"Stop paying your bills! We'll settle your debt for 50%!" It sounds like a lifeline, but for many, it's a trap.
Predatory debt settlement companies prey on people in financial distress. They promise to negotiate with your creditors, but often do nothing but collect massive fees while your credit score tanks and creditors file lawsuits against you.
If you paid a debt settlement company upfront fees without getting results, they likely broke the law. The Telemarketing Sales Rule (TSR) bans these companies from collecting a dime until they have successfully settled a debt. Hyslip Legal sues these scammers to get your money back.
Call for a free consultation: (614) 362-3322
How the Scam Works
The "Debt Relief" trap usually follows a predictable, destructive pattern:
1. The Pitch
They promise to cut your debt in half and make you debt-free in 12-24 months. They tell you to stop paying your credit cards and instead pay a monthly amount into a "dedicated account."
2. The Freeze
You stop paying your creditors. Your credit score plummets. Late fees and interest pile up. Creditors start calling you non-stop.
3. The Lawsuits
Creditors don't just wait around. They sue you. The debt settlement company often does nothing to help you with these lawsuits, leaving you defenseless.
4. The Fee Grab
Meanwhile, the settlement company is taking huge fees from your monthly payments—often 15% to 25% of your enrolled debt—before they've settled anything. This is illegal for telemarketers.
Is this happening to you?
You may be entitled to compensation of $500–$1,500 per violation.
Call Us NowThe Law: No Results, No Fees
The Federal Trade Commission (FTC) amended the Telemarketing Sales Rule (TSR) specifically to stop this abuse. Under the law (16 C.F.R. § 310.4), debt relief companies selling over the phone cannot charge a fee until:
- They have successfully renegotiated, settled, reduced, or otherwise altered the terms of at least one of your debts;
- There is a written settlement agreement, debt management plan, or other agreement between you and the creditor; AND
- You have made at least one payment to the creditor as a result of that agreement.
If they took fees before settling your debt, they broke federal law. You are entitled to a refund.
Did They Take Your Money?
Don't let them keep fees they didn't earn. We can help you recover your funds and hold them accountable.
What We Can Do For You
Hyslip Legal represents consumers who have been victimized by predatory debt settlement schemes. Our goal is to make you whole.
Recover Illegal Fees
We sue to get back every dollar you paid them in illegal upfront or monthly fees.
Cancel the Contract
We ensure the contract is voided so you don't owe them any future payments.
Damages
In some cases, we can seek damages for the harm done to your credit or for the lawsuits you faced due to their bad advice.
No Cost to You
We handle these cases on a contingency basis. We only get paid if we recover money for you.
Frequently Asked Questions
Is debt settlement always a scam?
Not always, but the "for-profit" industry is full of bad actors. Legitimate non-profit credit counseling agencies exist, but they usually don't cold-call you promising miracles.
They said the fees were for a "legal plan" or "attorney."
This is a common loophole attempt. Many companies claim to be "law firms" to bypass the TSR laws. If you never spoke to an attorney and they are just processing paperwork, they may still be liable.
I stopped paying my credit cards because they told me to. Now I'm being sued.
This is the biggest danger. You need to hire a real consumer defense attorney immediately to handle the lawsuit. The settlement company usually cannot represent you in court.
Can I just cancel and get my money back?
You can try, but they often refuse or claim they "earned" the fees. You usually need legal leverage to force a refund.
Get Real Legal Help
Stop the bleeding. Let us help you recover your money and get back on track.
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